Abuja: Shareholders have appealed to the Securities and Exchange Commission (SEC), registrars, and stockbrokers to make the claiming processes of unclaimed dividends easy, seamless, and less cumbersome. Some of the shareholders who spoke to News Agency of Nigeria (NAN) in Abuja on Sunday said that making the process easy would help reduce unclaimed dividends.

According to News Agency of Nigeria, the shareholders were reacting to the continuous rise in unclaimed dividend figures of banks and other companies, noting that the current process of claiming dividends is tedious and frustrating. Mrs. Bisi Bakare, the National Coordinator of Pragmatic Shareholders Association, highlighted that administrative costs, delays, and bottlenecks encountered by probate were discouraging in dividends claim. She mentioned factors such as fictitious names in buying shares during privatisation, relocation, death, and neglect of minority shareholders due to small dividend amounts as contributors to the rise in unclaimed dividends.

Bakare emphasized that many shareholders had purchased multiple shares with names they cannot recall and have since relocated before the introduction of e-dividend, leading to no updates on their accounts for dividend payouts. She pointed out that many shareholders have passed away without proper estate planning or wills, leaving their families unaware of their investments. Bakare also criticized the probate process, citing its administrative costs, delays, and obstacles, along with intentional frustrations caused by registrars, as reasons for the growing unclaimed dividends. She stated that the association is encouraging members to register for electronic dividends and keep their accounts updated with registrars to reduce unclaimed dividends.

Mr. Moses Igbrude, the National Coordinator of Independent Shareholders Association of Nigeria, expressed concern that even some companies recently listed on the Nigerian Exchange Group (NGX) are still experiencing unclaimed dividends. Igbrude suggested that registrars should proactively reach out to shareholders through their contacts. He criticized the dividend trust fund created by SEC and called for a multi-dimensional approach to address the issue of unclaimed dividends in the country. He stressed the need for stakeholders to educate shareholders and probate on claiming their dividends.

Igbrude further highlighted the challenges faced by rural shareholders who might not be aware of their unclaimed dividends. He suggested that banks could actively inform shareholders about their unclaimed dividends. He called for sincerity from stakeholders and a multi-dimensional approach involving companies, stockbrokers, registrars, and associations to address the issue effectively. Igbrude also urged for an easy and transparent process for transferring shares from deceased shareholders to their heirs.

NAN reports that despite the inauguration of the Nigeria Inter-Bank Settlement System (NIBSS) in collaboration with SEC, some banks' unclaimed dividends for the 2024 financial year have increased. United Bank for Africa (UBA) Plc recorded N45.99 billion as unclaimed dividends for the 2024 financial year, compared to N14.895 billion in 2023. Zenith Bank reported N30.6 billion in unclaimed dividends in 2024, up from N30.1 billion in 2023. Access Holdings Plc saw a decline in unclaimed dividends, with N17.73 billion in 2024, down from N21.3 billion in 2023.